Apple Ditches Imagination Technologies

Imagination Technologies shares plunge to an 8-year low

Author:: Edward Hardy
Publish date:: Apr 3, 2017 5:24 AM EDT

Imagination Technologies (IMGTY) shares lost more than two-thirds of their value in the opening minutes of trading in London Monday after Apple (AAPL) - Get Report , its biggest customer, said it will stop using the chip maker's intellectual property starting next year.

The British chip designer said that it has been informed by Apple that it will no longer use its intellectual property in new products in 15 months to two years time and that it will be no longer eligible for royalty payments under the current agreement, which the group described as "essential to its business." Apple uses Imagination's technology as the basis for the graphic processor units in its iPhones, iPads, iPods, Apple TV and the Apple Watch.